The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Micrel met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly, and earnings per share shrank significantly.
Margins shrank across the board.
Micrel recorded revenue of $58.8 million. The two analysts polled by S&P Capital IQ expected sales of $59.3 million. Sales were 22% lower than the prior-year quarter's $75.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.08. The two earnings estimates compiled by S&P Capital IQ forecast $0.08 per share. GAAP EPS of $0.08 for Q4 were 64% lower than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 50.5%, 530 basis points worse than the prior-year quarter. Operating margin was 9.3%, 1,540 basis points worse than the prior-year quarter. Net margin was 8.5%, 960 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $61.8 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $275.7 million. The average EPS estimate is $0.60.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 114 members out of 120 rating the stock outperform, and six members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Micrel a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Micrel is outperform, with an average price target of $16.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.